Arboretum Ventures Raises $268 Million To Lower Healthcare Costs

With healthcare costs continuing to spiral out of control, Arboretum Ventures has stepped up to the plate with the goal of pushing back.

The healthcare venture capital firm recently announced the closing of a $268 million fund. Investors in the fund include endowments, family offices, major health systems, payors and pension funds. 

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The fund will be managed by a seasoned team, including Managing Partners Jan Garfinkle, Dr. Tom Shehab and Dan Kidle, Partner and Chief Operating Officer Paul McCreadie and Chief Financial Officer Marcy Marshall. 

Arboretum aims to invest in innovative healthcare solutions that respond to the healthcare industry's pressing issues, such as an aging population and rising costs.

"We are grateful for the continued support of our investors, especially in such a challenging fundraising climate," Garfinkle said. "Our network of health system partners and industry advisers will help shape our investment strategy by providing insights to key strategic healthcare priorities." 

Over the years, Arboretum has made over 60 investments in various healthcare sectors like medical devices, diagnostics, life science tools and information technology (IT)-enabled healthcare services, positively impacting over 16 million patients nationwide. The investments cover various disease areas such as oncology, cardiovascular, infectious disease, pulmonology, urology and orthopedics.

The Michigan-based venture capital firm has a national presence and traditionally deploys around 75% of its investments in under-ventured geographies. The firm's most successful investments include BioIQ, Inogen, NeuMoDx Molecular Systems, nVision Solutions Inc., NxThera Inc., Rethink Behavioral Health and Swift Biosciences Inc. The fund primarily targets startups in their Series B and Series C startups.

"More than ever, our strategy of investing in companies that aim to lower healthcare costs while improving outcomes is vital to addressing significant challenges that face the healthcare industry," Shehab said. "Our healthcare system continues to grapple with an aging population and rising costs — we're excited to partner with entrepreneurs who are ready to meet this challenge head‐on."

Arboretum, founded in 2002 by Garfinkle and Tim Petersen, maintains a keen focus on identifying overlooked opportunities. More than two decades later, the firm continues to uphold its entrepreneurial spirit, aligning with the goals of the startups it seeks to support.

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